March 31, 2013 Financial Statements

ALLIANCE SEMICONDUCTOR RELEASES FINANCIAL STATEMENTS FOR
THE FISCAL YEAR ENDING MARCH 31, 2013

The company’s current assets have increased $17.6 million
during the period.  This increase is the
result of a market developing for the AMBAC pfd shares which are the primary
asset of the company.

 Alliance has sold 24.4% of the units of AMBAC pfd shares
that it held at the end of the prior fiscal year.  Two hundred and sixty units were sold prior
to the end of FY13 and 320 units were sold subsequent to the end of the fiscal
year.  The total proceeds of the sales
were $4.7 million with $1.7 million received before the year end.

 The company’s strategy continues to be to maximize and
monetize the securities which it holds and executed strategies to efficiently return
cash to it’s shareholders.

 Alliance plans to continue its participation in the lawsuit
against AMBAC Assurance Corporation alleging that AMBAC Assurance wrongfully
converted the original securities purchased by ALSC into AMBAC preferred
shares.  Alliance may from time to time
continue to sell AMBAC securities if market conditions are favorable.

 A secondary
asset of the company is its net operating loss carry forwards
for federal and state taxes.  Alliance is
in the process of completing a 382 study to understand the status of its net
operating losses (NOLs). Under the Section 382 rules, a change in ownership can
occur whenever there is a shift in ownership by more than 50 percentage points
by one or more five-percent shareholders within a three-year period.  When a change of ownership is triggered, the
NOLs may be impaired. In order to continue to protect this NOL asset, Alliance
is requesting that all of its investors directly contact the company's investor relations department prior to allowing their ownership interest to approach a
five percent level.  All shareholders holding five per cent or
greater should also notify the company before purchasing additional shares.